$2.5M in Positive Adjusted EBITDA
Company is Profitable and Has Increased Cash On-Hand YoY by 76%
Successfully Launched a New AI-Driven Brand Offering, Increasing Market Potential by 100%
TORONTO & SEATTLE--(BUSINESS WIRE)--April 22, 2026--
POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (the "Company" or "POSaBIT"), a leading provider of point of sale and payment solutions for the cannabis industry, today announced its financial results for the fourth quarter and year ended December 31, 2025.
"2025 was a transformative year for POSaBIT," said Ryan Hamlin, CEO and co-founder of POSaBIT. "We continued to demonstrate the strength of our business, as we grew our year-over-year gross profit dollars, posted over $2.5M in positive Adjusted EBITDA, and increased our cash position on the balance sheet. Most importantly, we achieved these results while continuing to invest in our platform through several AI-driven initiatives, expand our product offerings, and improve profitability across the business."
Hamlin continued, "Our focus on disciplined execution and operational efficiency has positioned POSaBIT as one of the only consistently profitable technology companies in the cannabis industry. We are entering 2026 with strong momentum, a healthy balance sheet, and tremendous confidence in the long-term opportunity in front of us."
The Company also highlighted the recent launch of its new POSaBIT Brands offering in early 2026, an innovative software platform designed specifically for cannabis producers and processors. Historically, POSaBIT's solutions have served only the cannabis retailers. With the introduction of POSaBIT Brands, POSaBIT is now able to address an entirely new segment of the cannabis industry.
"We are incredibly excited about the launch of POSaBIT Brands," said Hamlin. "For the first time, we are bringing POSaBIT's technology to producers and processors, essentially doubling our market opportunity. The platform delivers powerful tools for real-time reporting, vendor-managed inventory $(VMI)$, robust product catalogs, and B2B payments, all supported by a highly advanced, AI-driven backend. We are confident that this new solution and expanded market opportunity will drive significant value for POSaBIT in the months and years ahead."
Balance Sheet
As of December 31, 2025, the Company had cash and cash equivalents of approximately $1.8 million compared to $1 million as of December 31, 2024. This represents a 76% increase year over year.
Financial Results
in US Dollars Year ended
December 31,
December 31, 2025 2024 % Chg.
Revenue $10,004,101 $15,273,846 (34.5)%
Cost of goods sold $(2,770,492) $(8,269,317) 66.5%
Gross profit $7,233,699 $7,004,529 3.3%
Gross profit margin 72% 46% 56.5%
Operating costs $(9,312,733) $(12,175,820) 23.5%
Operating loss $(2,079,124) $(5,171,292) 59.8%
Other (expenses) income $82,746 $(557,307) 114.8%
Income tax recoveries
(expense) $(190) $12,240 (101.6)%
Income (loss) $(1,996,568) $(5,716,359) 65.1%
The following table reconciles Revenue, as reported, to Adjusted Revenue for the year ended December 31, 2025.
in US Dollars December 31, 2025 Revenue as reported $10,004,101 Add: Cash receipts from licensing contracts $5,668,145 Deduct: Licensing support revenue $(1,545,000) Adjusted Revenue $14,127,246
The following table reconciles Gross Profit, as reported, to Adjusted Gross Profit for the year ended December 31, 2025.
in US Dollars December 31, 2025 Gross Profit as reported $7,233,609 Add: Cash Receipts from Licensing contracts $5,668,145 Deduct: Licensing Support Revenue as reported $(1,545,000) Adjusted Gross Profit $11,356,754 Adjusted Gross Profit Margin 80.4%
The following table reconciles Net Income or Loss, as reported, to Adjusted EBITDA for the year ended December 31, 2025.
in US Dollars December 31, 2025 --------------------------------------------------------- ----------------- Loss, as reported $(1,996,568) Add: Foreign exchange loss, as reported $119,600 Add: Share-based comp, as reported $370,726 Add: Amortization and depreciation, as reported $13,931 Add: Credit loss provision, as reported $201,827 Add: Finance costs, as reported $548,171 Add: Interest accretion, as reported $8,019 Add: Transaction costs, as reported $75,391 Add: Other expenses, as reported $43,162 Less: Gain on litigation, as reported $(395,440) --------------------------------------------------------- ----------------- EBITDA $(1,010,991) --------------------------------------------------------- ----------------- Deduct: Licensing support revenue, as reported $(1,545,000) --------------------------------------------------------- ----------------- Deduct: Interest income (licensing revenue), as reported $(563,875) --------------------------------------------------------- ----------------- Add: Cash receipts from licensing agreement, as reported $5,668,145 --------------------------------------------------------- ----------------- Adjusted EBITDA $2,548,278 --------------------------------------------------------- -----------------
Conference Call Information:
Date: April 22, 2026
Time: 4:30 PM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 474682
Webcast URL: https://www.webcaster5.com/Webcast/Page/2708/53900
Conference Call Replay Information:
The replay will be available approximately 1 hour after the completion of the live event.
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 53900
Webcast Replay URL: https://www.webcaster5.com/Webcast/Page/2708/53900
Financial Reports
Full details of the financial and operating results are described in the Company's consolidated financial statements for the years ended December 31, 2025 and 2024, together with the accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the Company's website at www.posabit.com/investor-relations or on SEDAR+ at www.sedarplus.ca.
Non-IFRS Measures
Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT's licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold, and Adjusted Gross Profit Margin as a percentage of Adjusted Gross Profit as compared to Adjusted Revenue. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.
Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as "anticipate," "objective," "may," "will," "might," "should," "could," "can," "intend," "expect," "believe," "estimate," "predict," "potential," "plan," "is designed to" or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding annual cost reductions; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous
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